Naveen makes demand on new NH designations and more mine royalty; points out super-normal profit by miners and Australia’s steps to levy higher taxes on iron ore
Chief Minister's actions, Iron Ore, National Highways October 22nd. 2011, 3:28pmFollowing is an excerpt from a report in ibnlive.com.
Naveen demanded that five State Highways — Berhampur-Koraput, Madhapur-Rayagada, Phulnakhara-Konark, Kuakhia-Aradi-Bhadrak and Palasa-Khariar — be upgraded to NHs.
Following are excerpts from a report in Hindu.
The Orissa Chief Minister, Mr Naveen Patnaik, has sought 50 per cent share in “super normal profit” earned by private mine owners and said he would raise the issue of imposition of a mineral resource tax on iron ore during the National Development Council (NDC) meeting on Saturday.
“Mining companies are making super normal profits in Orissa. People of Orissa deserve 50 per cent of this…a quarter of our population is of tribals and we will put this profit to developing our areas,” Mr Patnaik said.
He said this was essential as most of the mining companies were operating on tribal land without doing justice to the people. Despite the State being the owner of the resources, the mine owners are benefiting beyond any measure of reasonable returns, he said.
“I have already written to the Prime Minister about it. I will be speaking about it in the NDC meeting. Rent-resource tax from the mining companies should be levied on Australia’s pattern,” he said.
In a July 30 letter to the Prime Minister, Mr Patnaik said, “The insatiable demand for iron ore in the export market has resulted in iron ore becoming highly profitable commodity, with returns from mining being far in excess of economically acceptable rates.”
The letter mentioned that the super-normal profits being made are evident from the audited operational profits of 80 per cent by miners, which is unheard of in other industries.
The Chief Minister had sought imposing a 50 per cent mineral resource tax, taking cue from Australia which has decided to levy higher taxes on iron ore from July 2012.
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October 22nd, 2011 at 10:16 pm
Honestly, I dont think any of those mentioned stretches should be converted to National Highways. That is nothing but shifting the financial burden from the State to Central Govt.
There is completely nothing that really requires any of those stretches to be made NHs. As it is Orissa has one of the highest NH densities in India. What we need are good roads. Why cant the state govt maintain some good state highways??
October 23rd, 2011 at 12:49 am
Our chief minister is only known to making demands. Hardly centre listen to his demands. e.g. The demand of increasing mining royalty have been made since a long time. Neither IBM nor the centre listening to this demand. I think our CM and the state govt should do something effectively to make the centre actually agreeing to the demands. Otherwise it doesn’t make sense only writing letters and speaking in occasional meetings.
October 23rd, 2011 at 12:43 pm
Yes the demand for the highways seems to have been pulled out of thin air. There doesn’t seem to be much of a rationale behind it.
As for the levying higher taxes on mines it almost seems like a lost cause. But perhaps ‘one more dhakka’ and the floodgates might open. There is no harm in trying.
October 24th, 2011 at 3:04 am
All these show our complacency of demanding more from the centre. The above comments show that we are tired of getting enough from the centre. Whats wrong in demanding more NHs? If the centre will build and maintain the proposed NHs then obviously the funds used for the maintenance of these roads could be diverted for some other roads in the state. We are shy of demanding the things from the centre. The other states have got a lot from the centre in other sectors. But have they stopped demanding more in the same sector? NO. West Bengal after having all the top level institutes demanded for more and getting that as well. Did they feel complacent that time? NO. Please support the CM of Odisha for good causes. After all the present CM is the one who is making name on national level for the growth of the state and considered one of the best CMs of India. Please don not spoil him as we had spoiled the cream political period of legendary Biju patnaik.
Lastly, I congratulate and thankful to Mr. Devendra Pradhan, one of the able sons of the soil and former Minister of State, Surface Transport,GOI, for putting up his efforts and making Odisha as one of the most NH dense states of India. Let us maintain that status otherwise other states will lead over us.
October 24th, 2011 at 3:20 am
A coastal highway from Gopalpur/Sonepur to Digha running through all proposed ports?
October 24th, 2011 at 1:07 pm
Mr. Sarangi,
I think we are not just Oriyas, but also Indians. We should also remember that the resources of our nation are limited. And trying to hog all of it is just plain wrong.
Please do not give the logic of “Others are doing it, so we should too”. It would make us equally wrong. In fact, it would make us even more wrong. Two wrongs dont make a right after all.
None of those stretches need to be maintained as national highways. The state should pocket the cost to maintain those highways. There are lots of other places in this country where national highways are in much much worse condition. I would much rather see the central funds getting used there.
If a particular road really has heavy usage and is, in present time or immediate future, truly of national importance from any point of view at all, there is nothing wrong in asking the GoI to declare it a national highway at all. But as of now, I dont see any of those stretches fitting such a criteria.
October 25th, 2011 at 1:29 am
Mr. Pani,
Please try to understand Odisha’s contribution to the natinal exchequer. In railways we are one of the highest contributors. What we get is peanuts in comparision to Bihar, West Bengal and Karnataka. What is our state of Paradeep port in comparision to Vizag, Kakinada, JNPT and Chennai (& Ennore)? How much we get for KBK being one of the lowest GDP areas of the country? The whole country is using the natural resouses of Odisha, how much we have got out of it? Peanuts. The whole country runs on Odisha power which utilises the resourses of Odisha and exploiting the environment of the local area. Go to Talcher and Angul area in summer, you will feel like entering into a volcanic area. And this power cools the buildings in Delhi, Rajastan and Bangalore (other places may be).
Finally, have we got enough out of all these sacrifices??????? Still pepole take pity on us because we are a poor state of Kalahandi. This has only happened due to our soft demand for the things and feeling of so called Indianness.
I still recall the statement of legendary Biju Patnaik who once threatened out of idiffernt attitude of GoI to liberate Odisha if the demands are not fulfilled including the much awaited the then second steel plant in the state. Please try to understand that we are weak in demanding thats why we are not getting.
One more example. Karnataka has five cabinet ministers out of the similar no. of congress MPs that of Odisha. And we have seen the condition of Mr. Srikant Jena.
Thanks
October 25th, 2011 at 8:11 am
Mr. Sarangi,
When did I ever say that we do not deserve central assistance for a lot of things?? When did I say that Odisha as a state has definitely not been taken care of well enough??
But that does not mean we demand anything and everything under the sun. The past does not give us carte blanche to go crazy with our demands.
The issue here is not whether Odisha needs central assitance or not. But whether those 5 stretches need to be converted into National Highways.
Because the answer to the first issue is a big “Definitely Yes”, while that to the second is “Completely No”.
If you feel that those stretches are really of national importance and need to be converted into “National Highways”, then I am sorry, but I disagree.
As for the apathy our state has received at the hands of GoI, it is not completely their faul. It is also our own fault of not choosing MPs who are vociferous in their demands and regularly take up the cause of our State in Parliament and with the GoI.
Even Mr. Naveen seems like a complete wimp in the department of using his political capital. He is in a situation where he has probably 12-15 MPs guaranteed in the next election, but his name rarely gets talked about at the centre.